I.

Examine the context and purpose of accounting:

Link our blog: https://doanquynh1003.wixsite.com/accounting/post/the-main-branches-of-accounting-and-job-

skillsets-and-competencies

We have five main contents on the blog:

- The objective of accounting and its use in difficult operational contexts: We will provide an outline of the
accounting industry in the current business environment in this part. Besides, it also points out that the purpose
of accounting work is to provide users with better financial information to base their decisions. In addition, we
also cover the scope of accounting in all fields.

- The analysis of the accounting function's contribution to decision-making, stakeholder needs, and
societal expectations: The primary task of the accounting function is to keep track of all current financial data.
There are two basic accounting functions: financial accounting and managerial accounting, although financial
data are only valuable if it is used correctly. Unlike financial accounting, where the emphasis is external and
looking back, managerial accounting is internal and forward-looking.

- The main branches of accounting and required job competencies: List three different forms of accounting,
in order to track the company's income and expenses the most efficiently, list three different forms of
accounting. These include cost accounting, management, and finance, all of which we explore inside the blog.

- Systems of accounting and the role of technology in contemporary accounting: In this section, we cover
the accounting systems used by businesses to make effective business and investment decisions. It is an
important tool to help organizations plan strategies in two main categories. Besides, we also talk about the role
and influence of technology in modern accounting. Real-time data recording, data collection and compilation
from numerous sources, and task automation have all been made possible and relatively simple by technology.

- Ethical, legal, and compliance issues, as well as how much they limit or endanger the organization.:
Identifies the importance of ethics in management accounting practices - on the part of both regulatory bodies
and businesses and encourages ethical, approachable approaches to a regulatory system founded on ethical
values. Since an accountant's job is to declare, record, and evaluate data, they play a crucial role in any economy
and society. The accounting sector is subject to legal and ethical restrictions in order to avoid these errors and to
guarantee accuracy and transparency. In addition, we also, if the case is the Enron scandal, to draw insights on
how accounting policies should not be used and applied.
 II. Prepare budgets for planning, control, and decision-making using spreadsheets:

 Sales revenue for June will be £10,000. From June through September, it will rise by $2,200 per
month. Sales revenue will increase to £25,000 in October and remain there in upcoming months.

 60% of sales will be made in cash, while 40% will be made using credit. Two months after the
deal is agreed upon, credit clients are expected to make payments. We have cash on board
below:

June July August September October November

Cash sale 6000 7320 8640 9960 15000 15000
Credit sale - - 4000 4880 5760 6640
Total cash 6000 7320 12640 14840 20760 21640
receipts

 Salespeople will create 80% of the sales income and will be paid 8% commission on that
revenue. One month following the agreed-upon sale, the commission is due.
 Payment to salespeople = 80% * sale revenue ( each month) * 8%

June July August September October November

Payment to - 640 781 922 1.062 1600
salespeople

Table 1: A cash budget for six months

The VietStar Ltd needs help and direction in particular with budgeting and how to use it to assist
effective control and decision-making, guide efficient resource allocation, and support those decisions.
As can the following below:

The total outflow of Vietstar in July will be £35940, including all of the above costs, and the net in July
will be negative £28620. All of the figures for the next four months will be calculated and presented in
the same manner as in July. Furthermore, in November, Vietstar will need to pay £8500 for additional
equipment, so the total outflow of Vietstar in November will be equivalent to the sum of all of the above
costs plus £8500 for additional equipment.

+According to the data in the table above, we can see that from July onwards, the budget was in deficit
due to excessive purchasing costs, which affected the budget and threw off the balance between cash
inflows and outflows.

Each business needs to come up with solutions to rationally spend and optimize its cash flow:

- Enterprises can flexibly change to low-cost sources of goods so that they can balance and
control the cash flow of the business.
 - Cash flow management is really difficult and complicated; only when businesses find out where
their profits are and what expenses they pay for can they plan appropriate and optimal spending
for future cash flow optimization.
- In addition, finding ways to release inventory is also a way to avoid causing a loss in the
corporate budget. Effective inventory management will assist businesses in avoiding
unnecessary waste by closely tracking statistics and forecasting budgets.

+ The total payment that must be paid for each month is steadily increasing, while the total inflow
received has also increased but is still lower and cannot cover the monthly outflow payment. The
problem is a lack of net income as a result of the credit sale not being paid off on time. As a result,
almost every month has a cash shortage. Despite the company's profits, they are insufficient to offset
losses, and they will experience a significant loss of business in the coming months. Furthermore,
collecting credit sales after two months is unreasonable because businesses will be unable to rotate
capital to pay for necessary expenses.

From there we will come up with a few solutions: extend payment terms with customers or negotiate
with vendors to postpone application payments for a longer period of time. This allows businesses to
increase the amount of cash at the end of the business by extending the capital turnover time and
shortening the payback period.

Table 2: Budget results and acutual results

After completing the first activity, GreenField Ltd now makes a flexible budget to present a budget
control analysis to see the difference between the actual results and the original value for June 2022 are
shown below:
The first was direct materials variance states which was a positive change as that change resulted in
£850 increase for the company compared to the intended budget. Because the business has found a
reasonable supply, it can be considered the biggest profit. To maintain stability, businesses should
regularly monitor and assess the supply and demand of goods.

Next was the direct labor variance that shows the change in manufacturing labor costs when actually
selling 7300 units of the product. It was a positive change as the company had £800 more than it
intended.

Next was the maintenance variance, which shows a negative change as it cost the company £675 more
than it intended. Because the level of maintenance was still low, the total maintenance cost is exceeding
the allowable level, in order to change and optimize this cost level, in addition to rearranging the
preventive maintenance plan, businesses also need to approach and change their maintenance work,
switching from manual methods to equipment maintenance management software solutions to automate
maintenance tasks and minimize costs.

Next are rent and rates cost, the change in overall fixed cost when 2300 units are actually results. That's
a negative change because it costs the company £400 more than the example. Due to high rental costs
but low output. This forces businesses to increase prices or keep prices unchanged, reducing profits,
causing disadvantages for businesses. Therefore, we have some suggestions such as: reducing
production costs or cutting office costs.

III. The benefits and limitations of budgets and budgetary planning, and control for an
organization

 Benefit of budgets
- Communicate company objective: Coordinating cross-department activities on the entire
company budget to make adjustments to the goals and discuss the priority expenditures that
should be best spent and allocated.
- Warning about possible issues: Thanks to budgets, businesses can control costs by regularly
checking and comparing them with actual performance, managers make changes before things
get out of control and cause the company to suffer significant monetary loss.
- Actual performance evaluation: Budgets give clear goals for measuring success at every level
of responsibility. Managers have the ability to conduct quick and simple performance reviews
using pre-established standards. From there, it can increase objectivity and greatly assist
managers in making accurate assessments using a variety of comparison criteria.
- Budget projections provide an overall picture of operational and strategic objectives that directly
support the operation and growth of the business. On the other hand, budgeting has become
simpler for accountants as a result of the advancement of digital technologies.
 Limitations of budgets:
- The main issue is rigidity and lack of flexibility in decision-making.
- Causing conflicts among individuals in making monthly budget decisions and sticking to
them.
- Budgeting takes time since it must take into account every facet of a company or a
person before authorizing any expenditures or spending toward a particular objective.
- The results of the budget are often inaccurate and realistic because the budget is often
based on judgment so changes in the plan will be affected.
 Benefit of budgetary control:
- Beneficial to achieving an organization's long-term goal
- A practical way to assess the effectiveness of teams, individuals, and cost centers
- It helps identify opportunities for efficiency improvements and reductions.
- It assists in the development of incentive programs based on performance
- Cost reduction is always the major objective
- It provides insight for careful examination and any required corrective action.
- Due to the interdependence between costs and results, it improves departmental
collaboration
 Limitations of budgetary control:
 - The conflict between departments when there is no common goal that affects the
performance of the organization
- Difficult to link between departments because control issues must depend on
coordination to implement the budget
- Most of the data is still taken from the past, no innovation
- A budget does not guarantee that an organization will have a smooth future.

IV. Critically evaluate the role of accounting in informing decision-making to meet

organizational, stakeholder, and societal needs within complex operating environments

Currently, meeting the needs of organizations, stakeholders and society in Vietnam is considered a
complex and rapidly changing operating environment, hence the role of accountants in providing
information for decision-making also becomes imperative:

- Before deciding to become a partner of a business, they must also appraise and evaluate the
development potential of a business before deciding whether or not to invest in it..
- In addition, it also provides data including financial statements and business information to
evaluate the development ability of a business, providing inaccurate information leads to
undervaluation or undervaluation of high prices in a business
- The accounting role also points out violations of environmental regulations to make reasonable
decisions for stakeholders.

V. Budgetary control solutions and their impact on organizational decision-making

- Collecting money from credit customers more quickly allows the business to have more money
available each month to pay bills in accordance with its goals.
- Plan a precise and thorough cash flow budget to quickly manage and continuously change in the
event that revenues and expenses could not as expected by the deadline.
- Employees from all departments within the company should monitor the budgeting procedure to
guarantee fairness and honesty. Activities should also be undertaken to raise employee
credentials, particularly for those working in the department of accounting and auditing.
- Utilize technologies to assist with budgeting, such as cloud computing and AI technology.
VI. Conclusion

Accounting has a significant role in the social order and state management, supporting decision-making
through taxation and governmental management of the economy, for example. As a result, accounting
has its own set of ethical and regulatory requirements. Overall, accounting is a significant profession
with significant operational obligations, so accountants must abide by the rules to guarantee the quality
of the output and to prevent grave repercussions.

VII. References

Francis, A. (2018) The benefits and limitations of budgets, [online] MBA Knowledge Base. Available at:
https://www.mbaknol.com/business-finance/the-benefits-and-limitations-of-budgets/

(Accessed: December 1, 2022).

Sona, S. (2020) Budgetary control? : Advantages?? & disadvantages?,[online] hmhub. Available at:
https://hmhub.in/budgetary-control-advantages-disadvantages

(Accessed: December 1, 2022).

Admin (2021) 9+ phương Pháp quản LÝ Hàng Tồn Kho Hiệu quả, Viện VJCC. MrM. Available at:
https://vjcc.org.vn/doanh-nghiep/9-phuong-phap-quan-ly-hang-ton-kho-hieu-qua.html

(Accessed: December 1, 2022).

Lê, T. (2021) Hao hụt Ngân Sách Doanh Nghiệp và Những LÝ do ít AI ngờ đến, Cloudify. Available at:
https://cloudify.vn/hao-hut-ngan-sach-doanh-nghiep-va-nhung-ly-do-it-ai-ngo-den/

(Accessed: December 1, 2022).

Team, T.I. (2022) How does financial accounting help decision-making?, [online]Investopedia.
Available at: https://www.investopedia.com/ask/answers/041515/how-does-financial-accounting-help-
decision-making.asp
(Accessed: December 1, 2022).

Murphy, K.K. (2021) Budgetary control: Process, planning, and making it work, [online] PLANERGY
Software. Available at: https://planergy.com/blog/budgetary-control-process/

(Accessed: December 1, 2022).

APPENDIX

SPEAKER NOTES
I. Blog
1. Introduction
We are all aware of how crucial the accounting division is to the business. What then is
accounting? Accounting is the profession of receiving, processing to provide relevant
information for making economic, social, and economic decisions, as well as to assess the
efficacy of company activities.
 The purpose of accounting: is to provide users with better financial information to base their
decisions
 The scope of accounting: is broad and encompasses such sectors, including industry, trade,
government, financial organizations, private citizens, and families.
A critical evaluation of the accounting function
 There are two basic accounting functions: financial accounting and managerial accounting,
although financial data are only valuable if it is used correctly. Unlike financial accounting,
where the emphasis is external and looking back, managerial accounting is internal and forward-
looking.
 Awareness and evaluation of the function of accounting is always necessary to organize
accounting work and use accounting information effectively.
 The main branches of accounting and job skill sets and competencies
Have 3 different forms of accounting, in order to track the company's income and
expenses the most efficiently. These include cost accounting, management, and finance,
all of which we explore inside the blog.

Accounting systems and the role of technology in modern-day accounting

- A company's accounting system is what it uses to record and manage its financial or accounting
records, such as income and expenses.
- The accountant's job is made a little easier by technology.
Issues of ethics, regulation and compliance and the extent to which they are constraints or threats
to the organization
 The regulation's goal is to provide a foundation for developing and perfecting certain accounting
standards in accordance with a uniform framework.
 Besides, talking about the threats and constraints that organizations face as a result of accounting
regulations and principles, as well as accounting ethics
 The Enron scandal demonstrates why effective corporate governance is essential for any
company to succeed in sustaining and generating lucrative operations. It also sheds light on the
improper use and implementation of accounting principles. Any abuse could have detrimental
effects on the company's health.
II. Excel
1. The VietStar Ltd needs help and direction in particular with budgeting and how to use it to assist
effective control and decision-making, guide efficient resource allocation, and support those decisions.
According to the data in the table above, we can see that from July onwards, the budget was in deficit
due to excessive purchasing costs, which affected the budget and threw off the balance between cash
inflows and outflows.
Each business needs to come up with solutions to rationally spend and optimize its cash flow:
- Enterprises can flexibly change to low-cost sources of goods
- They plan appropriate and optimal spending for future cash flow optimization.
2. After completing the first activity, GreenField Ltd now makes a flexible budget to present a budget
control analysis to see the difference between the actual results and the original value for June
2022 .The table shows that insurance and rental costs are negative changes when the actual price is
more than the expected amount.
III. The benefits and limitations of budgets
1.Benefit: Communicate company objective, Warning about possible issues, Actual performance
evaluation
2.Limitations of budgets:
-The main issue is rigidity and lack of flexibility in decision-making
-Causing conflicts among individuals in making monthly budget decisions and sticking to them.
IV.Evaluate the role of accounting
- Before deciding to become a partner of a business, the role of accountant also needs to appraise and
evaluate the development potential of that business, whether to invest in the business or not.
- The accounting role also points out violations of environmental regulations to make reasonable
decisions for stakeholders.
V. Budgetary control solutions
Utilize technologies to assist with budgeting, such as cloud computing and AI technology
VI. Conclusion

Overall, accounting is a significant profession with significant operational obligations, so accountants

must abide by the rules to guarantee the quality of the output and to prevent grave repercussions.